Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European indices traded with contained variations. Yesterday’s session was marked by sharp falls that could signal a reversal of investor sentiment, at least in the short term. Yesterday, the DAX broke the support formed by the area of 12490/12500, which constituted a relevant short / medium technical barrier. It is important to emphasize that in the last 12 months, the stock markets have not suffered any corrections worth noting. The only falls that deserve mention were the ones that followed Brexit and the election of Donald Trump but lasted only a few hours. So if S & P, which we consider to be the leading index of world markets, start trading below 2419 then the likelihood of a larger correction than witnessed in recent months will begin to be significant.
US markets closed with significant devaluations. Sales that hit the technology sector have spurred the general sentiment of investors. Yesterday, Reuters published the results of a survey conducted with 51 Wall Street strategists. When questioned about the S & P forecasts for the end of the year, the vast majority of respondents anticipate a limited valuation of the index in the second half of the year. On average, these managers believe that by the end of this year the S & P will be at 2460 (yesterday closed at 2419). Although these managers remain cautious about the state of the economy and the growth in corporate earnings, they do not exclude the possibility of a correction of at least 10% sometime during the second half. The main risks to the stock markets are that the Trump Presidency is failing to deliver on its fiscal and regulatory promises and the FED is excessively aggressive in its monetary policy normalization process, rising at a higher rate than expected. swear. Petroleum showed little permeability at this juncture, reaching yesterday the highs of the last two weeks. Today, the publication of household inflation will be at the top of the economic agenda and will affect yield behavior and reflect the various sectors such as utilities, telecommunications and real estate. Economists estimate that the downward trend in inflation in recent months will continue.
Asian markets closed lower, with the exception of the Chinese, penalized by weakness in the technology sector, explained by the sharp drop in Nasdaq. The main event of the day was the publication of PMI indices for China’s industry and services. In June, the PMI index for the industry accelerated from 51.2 to 51.7, surpassing the economists’ forecast of 51.0. Service PMI also improved in the same month, reaching 54.9 compared to the previous 54.5. These data provisionally attenuate fears about the Chinese economy but have to be interpreted with some caution. The PMI index that was published today is prepared by the State and many of the companies that respond to the questionnaires that constitute this indicator are state-owned and do not always move for purely economic purposes.